Boxoffice (Apr-Jun 1947)

Fuiure Looks Brighier, Yales Says in Report NEW YORK— Republic’s outlook is brighter than ever before in its history, according to Herbert J. Yates, president, in his address to stockholders at the company’s annual meeting held here this week. In discussing the growth of the company over the past eight years, Yates reported that the quarter just ended had shown considerable improvement over the same quarter last year although he hesitated to express a percentage of increase because of economic conditions and labor-management relations which had not yet been finally adjusted. CHARLES FELDMAN DEAL Yates told the stockholders that the company’s program of expansion would continue with the signing of a deal with Charles Feldman, who will bring Lewis Milestone, Orson Welles and Ben Hecht to the Republic lot. Milestone will begin production on John Steinbeck’s “The Red Pony’’ in Technicolor May 15 with Robert Mitchum set for one of the leading roles. A thorough analysis of the B picture and its current market will be made at the company’s regional sales meetings, the first of which was held at the New York Athletic club this week with James R. Grainger, executive vice-president, in charge of sales and distribution, presiding. In addressing the meeting, Yates said that the problem of producing B pictures was more acute than ever due to the increased costs of both labor and material and exhibitor unwillingness to absorb such increased production costs. A decision to either eliminate B product or place restrictions on the number of such pictures Republic would produce will not be made until after the company’s Hollywood sales meeting to be held during the week of April 14. RE-ELECT ALL OFFICERS Five members of the board of directors were elected by a vote of 1,190,237 shares at the company’s annual meeting. Walter L. Titus jr. and Arthur J. Miller were re-elected and Samuel Becker, Harry M. Goetz and Harry C. Mills were confirmed as directors. At the board of directors meeting following the stockholders meeting, the current slate of officers was re-elected, including Yates, president; Grainger, executive president; Titus jr., Miller, Edward L. Walton and John J. O’Connell, vice-presidents; John Petrauskas jr., treasurer; Richard S. Rodgers, Robert V. Newman, Nathan K. Loder, assistant treasurers; Joseph E. McMahon, secretary; Albert E. Schiller, Ira M. Johnson and Robert V. Newman, assistant secretaries. Film Carriers Offer Plan To Major Distributors PHILADELPHIA — As a result of recent trade press stories to the effect that some of the major distributors are thinking of opening exchanges in Jacksonville and San Antonio, James P. Clark, president of National Film Distributors, has sent out letters offering to build fireproof structures for this new service. This is a part of the national move started some months ago for independent producers and others who need distribution facilities. David O. Selzniek was one of the first to sign an agreement. Clark says National Film Distributors will build in any territory where there is need for this service “a modern fireproof building with ample shipping, inspection and vault facilities for all the distributors.” ATA Delays Second Convention Until Some Time New York — The annual convention of the American Theatres Ass’n, originally scheduled for this month, will be held some time in May. Robert W. Coyne, executive director, explained that the delay was caused by difficulties in working out, a convention program, lining up speakers and setting up a convenient date for a preliminary meeting of the board of directors. It had been hoped to hold the convention in April, the anniversary month of the ATA. Incidentally, the national headquarters here let the anniversary day, April 2, pass without a press release. Next Month Instead, the ATA, together with the Confederacy of Southern Ass’ns and the Southern California Theatre Owners Ass’n marked this first anniversary of the St. Louis convention by filing some more papers with the supreme court. They submitted a joint motion and joint brief asking the court to deny the applications of RKO, 20th-Fox, Loew’s, Paramount and Warners to dismiss the exhibitor organizations’ supreme court appeal on the antitrust decree. The antitrust case and the appeals are the principal reasons for the postponement of the convention, Coyne indicated. Ohio Fights a Changeover From State to City Taxes COLUMBUS — Exhibitors opened up this week on the proposal to eliminate the state three-cent amusement tax and substitute an act which empowers municipalities to establish their own theatre ticket levies. Although the exhibitors presented figures to show that they had paid $23,000,000 into the state treasury in amusement taxes since 1934, they said they had no objection to continuance of the state assessment but were dead set against allowing the municipalities themselves to do the taxing. What the exhibitors were particularly disturbed about, they informed the house taxation committee, was that the proposed bill sets no ceiling on taxes local governments may levy. The temper of city officials behind the new move was revealed by R. P. Barthalow, city auditor at Columbus, who told the committee that “an admission tax is among the easiest to administer and the costs of administration are so small.” CONSIDER 7 TO 10% LEVY Columbus is reliably reported to be considering a city tax of 7 to 10 per cent if the legislation is approved. A 10 per cent levy would raise about $500,000 a year for the municipalities, whereas all theatres in Franklin county in an 18-month period ending June 30, 1946, paid a total state tax of $297,047.77. Exhibitors had the tax figures for the 18 months charted, county by county, to strengthen their claims that they already were paying a tremendous tax. On the basis of a three-per cent levy, the following taxes were paid by theatres in the six largest counties in 1945 and the first six months of 1946: Cuyahoga (Cleveland), $913,949.61; Lucas (Toledo), $233,616.54; Franklin (Columbus), $297,047.77; Montgomery (Dayton), $258,218.23, and Summit (Akron), $234,959.47. Because of these huge tax payments, local governmental bodies now want their share of the taxes. Under the present law the taxes go into a state fund. When theatre men expressed fears that cities will levy much heavier taxes, State Tax Commissioner Emory Glander said: “I think their fears are unfounded. They will have to make their fight before the city councils and not here at the legislature. It is not a question as to the milking of a complacent cow, but a question as to who the milkman is going to be.” Arguments against repeal of the state tax were presented by P. J. Wood, secretary of the ITO of Ohio; Ernest Schwartz, president of the Cleveland Exhibitors Ass’n; M. C. Burnett, Loew’s central division manager, and F. W. Huss jr., treasurer of the Theatre Owners Corp. of Cincinnati. Wood told the committee that the tax is not tacked on to the ticket price. He said his organization has no objection to continuation of the tax, however, and suggested that money so raised be apportioned among local governments instead of going to the state general fund. A local tax will result in a “hodgepodge of tax rates in the same county,” Wood said. E-L Deal for Rank Films Clarified by Benjamin NEW YORK — Eagle-Lion is not going to take second choice after Universal-International on J. Arthur Rank product for distribution in this country. Robert S. Benjamin, president of the J. Arthur Rank Organization here, and Arthur B. Krim, president of Eagle-Lion, cleared up this point at midweek when both returned from a month of conferences in London. Selections of product will be made by a committee of representatives of both companies. Rank plans to produce 40 features next year with eight in Technicolor. Some will be reserved for the British market. Universal will get a minimum of 12 and Eagle-Lion will have at least five for distribution in the United States, Central and South America. Harry Brandt, A. L. Mayer Sign Pact With PRC HOLLYWOOD — A four-picture releasing deal has been signed by PRC with Marathon Pictures Corp., newly formed production company headed by Harry Brandt and Arthur L. Mayer, New York exhibitors. Marathon will begin production early this summer of the first film to be delivered to PRC. Frank Satinstein will be production chief of Marathon, Peter Mayer will handle direction, Max Wilk will be in charge of the story department and Robert Joseph will be associate producer. Brandt said he plans to spend a great deal of time in Hollywood. BOXOFFICE : : April 5, 1947 17